NAIROBI, Kenya- President William Ruto has announced that Kenya is ready to break ground on a major oil refinery in Lamu following talks with Africa’s wealthiest man, Aliko Dangote, and the Africa Finance Corporation.
President Ruto met Dangote, the President and Chief Executive Officer of Dangote Industries, and AFC President and CEO Samaila Zubairu on the sidelines of the United Nations General Assembly in New York.
The talks focused on financing arrangements and final preparations for the construction of the East Africa refinery.
“We are ready to break ground on the East Africa refinery in Lamu, a transformative project that will enhance the region’s energy security, deepen local value addition, create jobs and advance our industrialisation agenda,” Ruto said.
The proposed refinery is expected to process about 700,000 barrels of crude oil per day and supply petroleum products to Kenya and neighbouring countries.
It would become Dangote Group’s largest refining investment outside Nigeria and one of East Africa’s biggest industrial projects.
Dangote Industries plans to finance the project through internally generated funds, bonds and proceeds from an initial public offering. Company officials previously said construction could take up to three years once it begins. Reuters
The company has already selected the Lamu site and commenced soil testing, design and engineering work.
Although the project’s final cost has not been officially disclosed, Dangote Industries previously said it would be comparable to its refinery in Lagos, Nigeria, which cost more than $20 billion to develop.
Other reports have estimated that the planned Lamu energy complex could require approximately $17 billion.
Ruto said the facility would reduce East Africa’s dependence on imported refined petroleum products while strengthening regional supply chains.
“The refinery will unlock new economic opportunities, strengthen regional supply chains and position East Africa as a competitive energy and industrial hub,” he said.
Dangote, ranked by Forbes as Africa’s wealthiest person, built the Lagos refinery, which began operating in 2024.
The Nigerian plant has a refining capacity of about 700,000 barrels per day and has helped turn Nigeria into a net exporter of refined petroleum products.
Kenya currently imports refined petroleum products to meet domestic demand and also handles fuel destined for neighbouring countries through its regional pipeline and transport network.
Ruto did not disclose the groundbreaking date or the financing commitments secured during the New York meeting.
“We are focused on turning this landmark project into reality and delivering tangible benefits for the people of the region,” the President said.
